SWOT Analysis of Caffe Finix

Added on -2020-02-14

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A33124-SmallBusinessEnterprise1486630300 1
Student Name
Course Name
Date
A33124-SmallBusinessEnterprise1486630300 2
I choose on Caffe Finix shop located in Stratford around the Stratford College and the
Westfield Shopping Centre. It was opened way back in 2009.
It famous for its daily necessity for providing services to coffee addicts as they get away from
the daily boredom. They meet fiends and a couple of people during the sessions. Some people
read the books while in there as others stare on the screens, all aimed to relief from the daily
stress and boredom. It is owned by Mr. Khan, a business man who has got an experience for over
17 years now. The coffee shop is 1500 square foot. It rises up to 25000 sterling pounds with
about seven employees. The shop provides tea, coffee and breakfast mostly to Stratford College
students.
SWOT ANALYSIS
The firm has the capabilities and resources to keep it in business. Basing on SWOT, the first step
of planning that helps investors to make sound decisions in focusing to the key issues. SWOT is
the only tool that company officials can use to plan ahead or in formulation of the strategic plan.
Itis about the Strengths, Weaknesses, Opportunities and Threats of the firm in question. It is
used for the internal business analysis as well as the external analysis for the inclusions like the
opportunities and threats re from the outside part of the business. SWOT is used in marketing
because it is easy, and intuitive. It gives useful information to help in matching the company’s
resources and its capabilities to the environment of operation, more specifically the competitive
environment.
Strengths
It is about the areas or aspects of the firm or any business in place where the firm does better.
They are the resource advantage in relation to the competitors and the market needs available in
the domains of the business. It is the opportunities that gives advantage to the firm in
competition for a better share in the market .It is what provides the business with comparative
advantages in the entire market .They are the strengths that arise from the resources of the
business and the competencies available and within the access of the firm.
Examples of Strengths enlisted by some firms to provide evidence on strengths.
Company Strengths
Apple Innovation of product
Tesco Broad range of product
Coca-Cola Stronger brand name
The following are the strengths of the Caffe Finix Shop
A33124-SmallBusinessEnterprise1486630300 3
It has a broad product range
Excellence in fresh, quality food and coffee
Good business location along high street and around shopping centers
Nice reputation amongst its customers
Ever growing sales turn over
Weaknesses
They are the inefficiencies, limitation deficiency in a business or say the competencies relative to
the competitors which make the firm to appear in effective.
The Caffe Finix has the following weaknesses
1. Weak food sector in provision as compared to others
2. Most brand names for it business are not known all over
3. Expensive rent
Opportunities
They are aspects of the environment which a firm can take advantage of or capitalize on to
flourish further in business. The firm can only succeed depending on whether its strengths its
opportunities in the environment are many and viable and can only be utilized fully by the firm
for it has opportunities to exploit. The following make up the Caffe Finix Shop opportunities
1. Selling of the brand name to earn profit through carrying out franchise businesses which
is way easier to start.
2. Investing more capital in the Unite d Kingdom for the UK market has a growing market
for sandwich shops which is also growing at an exponential rate
3. Provide the competitive price in cases of directly contracting or simply investing in the
developing nations
4. Being opportunity cautious and working on seeing more opportunities and market niche
to conquer.
Threats
Threats are the aspects in the business environment which aim at hindering the firm from
achieving its objective. An environmental threat is a challenge posed by an un favorable trend or
development that would lead in the absence of defensive marketing action, to deterioration
insales or profit. Threat should be classified according to seriousness and probability of
occurrence.
They include the following
A33124-SmallBusinessEnterprise1486630300 4
1. Government new policies and taxations
2. Political instability for instance wars
3. Competitors
Caffe Finix Profit and Loss Account for the year ended 29th April 2015 and 29th2016 fiscal years.
2015 (Sterling pounds) 2016 (Sterling Pounds)
Sales 120000 200000
Cost of sales 80000 150000
Gross Profit 40000 50000
Overhead costs 10000 15000
Net Profit 30000 35000
Caffe Finix Balance Sheet as at 30th May 2015 and May 2016 Fiscal years
2015 (Sterling Pounds) 2016 (Sterling Pounds)
Fixed asset 15000 12000
Current asset
Stock 7000 18000
Debtors 12000 36000
Bank 1000 0
20000 54000
Less current liabilities
Creditors 6000 15000
Bank overdraft 0 10000
Working capital 6000 25000
Net assets 14000 29000
Financed by capital 29000 41000
Opening capital 22000 2900
Add net profit 30000 35000
52000 64000
Less drawings 23000 23000
Closing capital 29000 41000

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